By Srinivas Chowdary Sunkara // petroabazaar // 23rd Sep, 2021.
Brent oil Nov futures prices gained $1.83 or 2.46 pct to settle at $76.19 a barrel on London based ICE futures Europe exchange. WTI oil futures for Nov delivery closed $1.08 or 1.52% higher at $72.23 a barrel on NYMEX last night. In Shanghai, Crude oil main contract futures prices inched down 0.7 Yuan to 473.9 Yuan/bbl while MCX front month futures prices climbed Rs.117 to Rs.5324 a barrel yesterday. Brent premium over WTI widened to $3.96 a barrel during the session.
The world crude oil price index curves continued to demonstrate upside momentum on stock draws across the market, The sentiment was buoyed with the producers finding difficulty to cater the demand needs. Turning to weekly numbers, Trouncing the analysts expectations, EIA reported that U.S crude stocks were drawn by 4.7Mbpd while gasoline stocks were piled up by 3.5Mbpd where as distillates remained drawn by 2.6Mbpd during the last week. U.S output ramped up since facilities at Gulf of Mexico continue to return to production. A significant jump in crude imports with a little slippage in exports led to jump in crude throughput to refineries. Increased refineries percentage utilization caused gasoline build. It seems that product demand rebounded to pre-pandemic levels as per refinery activities. On the other hand, Tightening monetary policy by U.S Federal Reserve signaled to cut investor tolerance for riskier assets such as oil. Oil prices are remained supported with rising natural gas prices and difficulties OPEC members struggling to raise output, May remain short lived in the market. Today, Asian markets are opened in positive territory, Clung to some gains at the time of reporting.
Good day to all.
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